Chase Bank Allocates KES. 60B ($600M) to Informal Entrepreneurs.
Mid-tier lender Chase Bank Kenya has announced it will commit over KES.60 Billion ($600M) over the next three years to lend to entrepreneurs in the Small and Medium Enterprise sector or SME.
The funds are intended to ensure that formal credit lines can be extended to those entrepreneurs who would otherwise not have access to formal financing. This will see the bank reach a wider net of entrepreneurs.
The announcement was made at the 6th Global Entrepreneurship Summit 2015 which is being co-hosted in Nairobi by President Uhuru Kenyatta and U.S President Barrack Obama.
Speaking at the Summit, Chase Bank Kenya Chief Executive Paul Njaga said the move to earmark the funds was part of the brand promise to enable its SME clients achieve what matters most to them.
“The provision of these funds is proof of our commitment to the SME sector. The funds coupled with our unique customer proposition means our clients can access an unrivalled financial products and services from their relationship bank.” He added.
The bank will be providing the funds as part of it current strategy which focuses on the SME entrepreneur, with a special focus on the small business segment.
“Chase Bank Kenya with its strong digital focus is enabling its customer’s access financial products and services through technology. This allows the bank to disburse the funds faster and more efficiently to the benefit of its customer thereby, removing the proximity barrier.” remarked Mr Njaga.
As a lender, Chase Bank Kenya seeks to be the partner of choice for the entrepreneur in their journey and help them access the facilities. This goes beyond day to day transactions for the SME owner to grow their business.
Chase Bank has made a significant difference in partnering with SMEs in the Youth, Women, Trade and Agri Business segment. These partnerships and sector focus has attributed to the significant market share Chase Bank commands in the SME sector.
The fund is also expected to supplement government efforts to expand funding for SME’s through initiatives like the Uwezo Fund as well as the reserving of 30% of government procurement contracts for women, youth and persons with disabilities.
Chase Bank successfully concluded the issue of a Corporate Bond that had an impressive subscription rate of 161% and raised Kes.4.8 Billion shillings ($480M) subordinated debt.